Investment potential of Brookfield Renewable shares
1. Dividend yield:
- Brookfield Renewable Partners L.P. $BEP+0.7%: Term Yield 5.9%.
- Brookfield Renewable Corporation $BEPC+0.7%: Forward yield just over 5%.
2. Stock Performance:
- Both stocks have declined since the beginning of 2024.
- Despite this, analysts expect a potential upside of over 21% over the next 12 months.
3. Growth Factors:
- Increasing demand for renewable energy.
- Strategic acquisition of a 53% stake in global renewable energy provider Neoen, expected in the fourth quarter of 2024.
4. Reliability of payouts:
- 90% of the company's cash flows are contractually hedged, ensuring reliable dividend payments.
- The company has increased its distribution per unit compounded annual growth rate by 6% since 2001.
- Long-term plan: distribution growth of between 5% and 9% per annum.
$BEP+0.7% Offers attractive dividend yields with growth potential. Even when the stock price declines, dividend payments remain reliable due to strong cash flow and long-term growth plans, making this stock an attractive choice for investors seeking stable income and growth potential.
The stock has fallen to a significantly lower value in recent years. This has increased the dividend yield. But the price is below where it was at the start of the pandemic. That's always a redflag for me.